Benefits of Owning a Home

For many people, owning a home is the fulfillment of the American dream. One of the attractions of homeownership is that it is seen as a good financial investment. But with the changes in lending practices along with the recent housing crisis, the number of people who are planning to buy a house has reduced significantly.

Given these recent events, it would be a good idea to evaluate first if becoming a homeowner is right for you. Here are some of the benefits of owning a home.

It is yours

Renting a home comes with a lot of restrictions. But once you own a house, you’ll have the freedom to create the living environment you want. You can paint the walls with whatever color you like, bring home a pet or do whatever you want without having to ask permission from a landlord. Plus, it gives you a sense of stability knowing that you can stay in that house as long as you want.

It’s a good investment

While growing up, we were always taught that buying a home is a good investment. This is because your home can increase in value, especially if you stay in your home for a very long time. In fact, home values have gone up an average of 5-6% over the past 50 years.

You build a strong credit history

Typically, lenders will take a look at your credit score in order to determine whether or not you are a good borrower. When you buy a house and settle your monthly mortgage payments on time, it will help you build a strong credit history. This will be very helpful in the future, especially if you plan to apply for other loans or refinance your mortgage.

It is cheaper than renting

Renting a home can be cheaper than buying a home in the first few years. But over time, your mortgage payment will be lower than the rent you would have been paying.